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Azerbaijan's largest bank to introduce flexible service system

Business Materials 16 July 2011 12:12 (UTC +04:00)
During the first half of the year, the assets of the International Bank of Azerbaijan (IBA) increased by eight percent and totaled 4.951 billion manat as of July 1, the bank reported.
Azerbaijan's largest bank to introduce flexible service system

Azerbaijan, Baku, July 16 /Trend/

During the first half of the year, the assets of the International Bank of Azerbaijan (IBA) increased by eight percent and totaled 4.951 billion manat as of July 1, the bank reported.
This amount does not include funding for public projects by the Central Bank, served by the IBA, the amount of which currently totals over 955 million manat.

The loan portfolio of the bank in the first six months of 2011 increased by seven percent (more than 200 million manat) - up to 3.153 billion manat, or makes up about 39 percent of the total loan portfolio of the country's banking sector. About 60 percent of credits during the reported period was provided to private sector, mainly in the spheres of industry (45 million manat), trade and services (103 million manat) and agriculture (9.6 million manat). For individuals the loans of different types totaled $26 million manat, including auto loans, mortgage and pawn credit and other types, which indicate the direct involvement of the bank in the social sphere.

The share of hopeless and dangerous loans as of the end of six months was only 5.5 percent of the total loan portfolio, which total just over 169 million manat.

The IBA still has the largest client base in the region. As of the end of June this year, the number of clients reached 767,000, of which 753,000 are individuals.

"Naturally, the bank's priority is to improve the quality of customer service. Even last year it was decided to optimize business processes in the branches, and this process is being completed. In addition, "CRM" project (system to manage work with customer) has already started, which will enable even to closer work with customers of the bank, create a flexible service that allows to provide banking services, depending on the specifics and needs of our customers individually," the report said.

The bank also actively continues to build innovative customer service system, such as "Internet Banking", "Mobile Banking", "electronic commerce" and other high-tech products, increasing the level of service. Despite that the bank has lowered interest rates on deposits, only over six months of this year, fixed-term deposits from the population to IBA increased by 16 percent to 603 million manat already, and the total amount of funds by individuals - more than 810 million manat.

The income of population from deposits in the IBA for six months amounted to more than 33 million manat, or 37 percent increase compared to last year. In general, the bank's liabilities as of the end of six months increased by nine percent to 4.26 billion manat.

The authorized capital of only state-controlled bank as of July 1 of this year amounted to 240 million manat, and the balance capital rose by 3.5 percent - to 689 million manat. For the six months, the IBA transferred to the state budget about 15 million manat of various taxes.

During the reported period, the revenues of the IBA amounted to 170.8 million manat, while profit before tax amounted to more than 14.4 million manat, which is also an indicator of stability and prosperity of the bank.

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